EBA identifies creditworthiness assessments and digitalisation as some consumer trends for 2020/2021

The European Banking Authority (EBA) has identified topical issues including irresponsible lending, creditworthiness assessments, and digitalisation in its Consumer Trends Report for 2020/2021.

Furthermore, the Report identifies other topics, such as selling practices and access to bank account. The EBA observed that mortgages continue to have a big impact on consumers' personal finances, representing 79% of loans to households. During the same period, the volume of consumer credit has increased by 14%, and that of deposits by 14.6%.

In both mortgages and consumer credit, the impact of the COVID-19 pandemic has led to a heightened engagement between lenders and borrowers with a focus on the use of moratoria and government guarantees, according to the official press release. The EBA has supported such initiatives, with the aim of supporting the short-term operational and liquidity challenges faced by borrowers.

Furthermore, the number of people holding a payment account within the EU has further increased and now covers a significant percentage of the EU population. However, issues have emerged regarding the impact of ‘de-risking’ on customers who are denied access to such accounts.

Regarding payment services, payment cards continue to be the most widely used payment instrument in the EU. The Report observes an increase in the use of contactless payments during the COVID-19 pandemic.

This report is based on information provided by the national authorities of the 27 EU Member States, national and EU consumer associations, the members of the ‘Financial Dispute Resolution Network' and EU industry associations. The Report also assesses quantitative data from the European Central Bank and the World Bank.